Why did Morgans just lower its outlook on Collins Food and Pro Medicus shares?

The S&P/ASX 200 Index (ASX: XJO) has opened higher on Monday morning, however one broker has adjusted its view on Collins Foods Ltd (ASX: CKF) and Pro Medicus Ltd (ASX: PME) shares. 

Both ASX 200 companies have fallen significantly in 2026. 

In a note out of Morgans, the broker lowered its price target for both companies. 

Despite the target price reduction, the broker still sees more than 40% upside for both stocks.

Collins Foods Ltd (ASX: CKF)

Collins Foods is engaged in the operation, management, and administration of chain restaurants in Australia and Europe.

The company’s recognisable brand names are KFC and Taco Bell. The majority of the company’s revenue comes from KFC restaurants in Australia.

Year to date, its share price is down more than 17%.

In a note out of Morgans, the broker revised its forecasts ahead of the FY26 result in June. 

We revise our CKF forecasts ahead of the FY26 result in June, trimming underlying NPAT to reflect deferred store openings, reset German acquired store economics, and a lower EU SSS assumption to better capture the Netherlands-skewed mix for FY26, partially offset by a marginal AU SSS upgrade on sustained KFC Australia momentum.

The broker has retained its buy recommendation. 

However it has now reduced its price target to $12.50 (from $12.70).

From today’s opening price of roughly $8.58, this price target still indicates an upside potential of 45%. 

Pro Medicus Ltd (ASX: PME)

Pro Medicus provides of medical imaging technology. The company is recognised as a leading supplier of radiology information systems (RIS), picture archiving and communication systems (PACS), and advanced visualisation solutions for medical practices and hospitals.

Pro Medicus shares have been amongst many healthcare stocks that have struggled in 2026. 

Its share price is down 33% year to date. 

In a note out of Morgans, the broker said it has deployed a new model and deliberately set a lower bar. 

Our remodelled estimates prioritise achievability over optimism, staging implementation revenue conservatively and mark FX to spot. We see this as the right framework for a stock where sentiment has been fragile. On the business operations front, the story remains untarnished.

Contract newsflow since February has been exceptional: ~$100m in wins and renewals, all at higher pricing, with cardiology upsell gaining traction. The demand story is not in question. We re-emphasise our positive long-term conviction on the name although lower our valuation to reflect current but potentially fleeting headwinds.

The broker has retained its buy recommendation on PME shares and reduced its price target to $210. 

From today’s opening price of around $148.74, this new price target indicates an upside potential of 41%. 

The post Why did Morgans just lower its outlook on Collins Food and Pro Medicus shares? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended Collins Foods and Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.